The transportation industry relies on oil to keep its road, rail, maritime and air networks operating. As time goes on oil is becoming increasingly scarce resulting in price increases. This research essay will delve into the effects of rising oil prices will have on the transport industry along with solutions.
Oil is the main driving force behind the transportation industry as no other alternatives burn as cleanly, or are as safe to transport. Bio fuels have created a niche in the market but unfortunately there is no feasible way to harvest enough biofuel to meet the worldwide oil demand. When oil first became a commercial operation in the 1860’s there were two wells in America that produced a total of 6,500 barrels a day; at the time this was enough to accommodate for demand worldwide. In more recent times we are extracting around 70 million barrels of oil every day to keep up with demand (Tabak 2009). The rising cost of fuel generally comes from development in extraction technologies or recalculated estimates of remaining deposits within the reserves. The rate of discoveries of large oil and natural gas reserves has been on the decline for the past 40 years (Wilson & Burgh 2007).
Fuel is the highest operating expense faced within the transportation industry. Without smart planning companies may become unable to remain competitive or economically viable in the market due to the rising cost of fuel (Sowinski 2013). In the late 20th century additional costs would generally be pushed onto the customer but as competition has increased in the transportation market this would lead to the customers taking their business to cheaper firms that offer the same service. This is where the role of the transport manager comes into ...
... middle of paper ...
...s in Victoria’, BP, Viewed 20th March 2014
Motormouth 2014, ‘Fuel Prices And Petrol Prices Australia’, Motormouth Pty Ltd, Viewed 20th March 2014
Sayigh, A 2012, ‘Comprehensive Renewable Energy’, Elsevier Ltd., Amsterdam, The Netherlands, Viewed 20th March 2014, Science Direct database.
Nugaras, J, Radzeviciene, A 2012, ‘Networking in the transport sector: inter-firm vs intra-firm perspective’, Science – Future of Lithuania, Issue 2, Volume 2, pp. 69, Viewed 20th March 2014, Academic Onefile Database.
Australian Department of Resources, Energy and Tourism 2012, ‘FUEL FOR THOUGHT: Identifying potential energy savings in the Australian road and rail sectors’, Viewed 22nd March 2014
http://www.army.mil/article/79388/ (accessed March 16, 2014). Tiwari, G.N., and R.K. Mishra. Advanced Renewable Energy Sources. Cambridge, U.K.: RSC Publishing, 2011. U.S. Congressional Record - Senate.
The North American transport system is run by several different agencies, each one having its own important part in making it all run smoothly and efficiently . There are also several policies that have been put in place to keep the transportation system working for the good of everyone. The agencies involved keep very good records of all the types of transportation that make up the system, which makes it easy for anyone to be able to see all the different statistics associated with the system. The Freight broker business is another important part of the transportation system, the following paragraphs will tell how all these things work together.
I am a husband and a father of four lovely children. We need a large vehicle to haul all of us around town. And of course I would do anything to keep them safe and I always want to provide them with the best. Therefore, after the birth of our fourth child two and a half years ago, my wife and I decided to upgrade our Ford Explorer to a Ford Expedition. We got everything from the side-curtain airbags to the TV and DVD player. What we did not know was we also purchased a rather large unleaded gas bill. The first time we filled the tank it cost us roughly $35; today it costs us right around $75 to fill the tank. Obviously the price of gas has increased significantly in the last two years. The price increase is due to a fluctuation in the supply and demand of not only gasoline but also crude oil, which is needed to manufacture gasoline. In addition, several other factors are influencing a change in the price of gasoline.
U.S. Energy Information Administration. (2012, August 14). Gasoline Explained: Regional Gasoline Price Differences. Retrieved May 9, 2014, from Why Are Gasoline Prices Higher in Some Regions Than in Others?: http://www.eia.gov/energyexplained/index.cfm?page=gasoline_regional
...th a growing proportion of elderly people. Global market dynamics and innovations in big data and social networking are transforming the business strategies of companies everywhere—and forcing them to rethink fundamental rules of engagement. For better or worse, the future entrepreneurs will have to surface as one the most disruptive forces. As big data pushes for alternative ways of working – proactive solutions that drive information must quickly figure out which new policies and tools can be utilized most effectively. This grants enormous opportunities for key technological breakthroughs that will be needed for the next generation of transport.
For over 100 years, the automobile industry has relied on gasoline as its main source of fuel. Gasoline is a colorless, highly flammable substance used in internal combustion engines. It is a fossil fuel made from crude oil, a natural gas formed from the remains of ancient plants and animals (Webster‘s Dictionary). Gasoline has positively influenced our way of life by providing convenient, on demand transportation. It has created a global economy that moves people and goods faster and more easily than ever imagined (Povey 12). Although a seemingly perfect substance, it has unprecedented flaws. The tremendous political, environmental, and economic problems resultant from the excessive use of gasoline leads to the conclusion that the automobile industry should not continue to rely on this source of fuel.
Fuel prices is an area of concern for the motor carrier industry. Fuel prices are at an all-time high, driving the industry to make drastic changes. Individuals in the industry believe that by reducing the demand for fuel is the best way to address the current fuel issue. One of the leading alternatives to this fuel issue could be natural gas.
The Australian Broadcasting Corporation’s (ABC) news article titled, “Petrol price soars, more pain at the pump ahead,” discusses the rise in the price of fuel and its effect on Australian motorists. This article also discusses how this rise in the price of fuel occurred, mainly focusing on its effect on consumers (Janda 2014).
Transportation is an ever-growing sector in our society today. Because of the bustling city life we have today, most of us use transportation means to get from one place to another. Generally, road transportation comprised of nearly 40% of all energy sector emissions. While road transports in 2012 were up by 68% over 1990 levels, the trend has been flat ever since 2007. This flat trend in transport activity combined with improving efficiency. Transport of passenger and freight by rail is less carbon intensive than by road (Ministry of Business, Innovation and Employment New Zealand 1 and 6)
The recent surge in the cost of heating oil, diesel fuel, and gasoline in the United States has had significant impact on many sectors of the U.S. economy, but most importantly it has had quite a devastating affect on the trucking industry. This is important due to the fact that nearly “70% of U.S. communities rely solely on trucking for their supplies” (“ATA” 23). If the government continues it’s trend of non-intervention and refuses to place pressure on OPEC, the prices will continue to soar well over the two-dollar mark, and cause the trucking industry as a whole to shut down bringing the U.S. economy to a grinding halt.
The industry is divided into three distinct sectors including the upstream, midstream and downstream sectors. The upstream sector includes the exploration and production of crude oil as well as the exploration and production of natural gas. This sector has experienced the largest amount of deals in terms of mergers and acquisitions, which will be further discuss in section III. The midstream sector involves the transportation of extracted petroleum from the upstream sector through pipelines, rail, barge, truck as well as storage. Finally, the downstream sector connects the end consumers through derived products such as gasoline, liquefied natural gas (LPG), liquefied natural gas (LNG), kerosene (aircrafts), and diesel…
The transportation & logistics industry is a form of industry that keeps people and products on the move, it includes airlines and airports, shipping companies, logistics service providers and other transportation companies. That’s why it is considered the backbone of modern global supply chains. In a place like the Kingdom of Saudi Arabia that has diverse geography with a dry desert and great temperature extremes and a large area of about 2.1 million square km, a transportation & logistics industry is a necessity. Imagine you need to move from one city to another (of course it will be so hard to cross large areas of empty deserts) you have only two options to transfer from one to another city; the first option is to drive and the second option is to fly and ship your car via a car transport carrier. The harsh climate in Saudi Arabia makes people to prefer using the second option, this cause the market of transport market to enlarge. Albassami International Group is one of the biggest companies established to satisfy those needs. It is considered one of the biggest companies specialized in vehicle transportation in the Middle East. The philosophy of the company is to serve the needs of the clients over the span of thirty two years, throughout which they constantly had an eye to the future by evaluating the most appropriate ways in which to make transporting clients’ vehicles via the best and safest answer. They operate round the clock to serve clients at all times.
The drastically increasing prices of fossil fuels and gasoline were making it harder for a middle income people to afford conventional vehicles in the near future. The gasoline is a natural resource which is reducing the supply of our reserves every second. In order to keep the fuel prices in control...
Transportation is vital to a nation's economy. Reducing the costs of transporting natural resources to production sites and moving finished goods to markets is one of the key factors in economic competition. The transportation industry is the largest industry in the world. It includes the manufacture and distribution of vehicles, the production and distribution of fuel, and the provision of transportation services. In the 1990s, approximately 11 percent of the U.S. gross domestic product and an estimated 10 percent of all jobs in the United States were related to the transportation industry.
Confronting the challenges of the future will often require the adoption of new business models. The majority of urban transport business models are at the growth or maturity stage. These models embrace technologies developed for both individual modes of transport and collective modes such as bus, tram and train.